• May 11, 2010
Conventional wisdom might tell you that Toyota should have lost loads of money last quarter in the wake of the company's largest-ever global recall and safety scandal. Perhaps it shouldn't surprise us too much to hear that conventional wisdom would be all wrong. In reality, Toyota reported a profit between January and March of this year of $1.2 billion.

This profit comes despite the fact that Toyota reports expenditures related to the recall mess at a little over a billion dollars (or, 100 billion yen) and surely took a monetary hit compared to previous years due to the unprecedented spate of incentives to keep sales rolling. The gurus at Edmunds estimate that Toyota's incentive spending is up by over half (an average of $2,498 per vehicle) compared to the previous year.

According to company head Akio Toyoda, the automaker plans to continue boosting profits by "[offering] high quality, reasonably priced vehicles." That certainly sounds reasonable, no? Executing on that promise, though, is the hard part. Click on past the break for a complete rundown of Toyota's latest financial report.

[Source: The Detroit News, Toyota | Image: David McNew/Getty]
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Toyota Announces Year-End Financial Results

(All consolidated financial information has been prepared in accordance with accounting principles generally accepted in the United States of America)

May 11, 2010

Toyota Motor Corporation (TMC) today announced financial results for the fiscal year ended March 31, 2010.

On a consolidated basis, net revenues for the fiscal year ended March 31, 2010 totaled
18.95 trillion yen, a decrease of 7.7 percent compared to the last fiscal year. Operating income increased from a loss of 461 billion yen to 147.5 billion yen, and income before income taxes, minority interest and equity in earnings of affiliated companies was 291.4 billion yen. Net income* increased from a loss of 437 billion yen to 209.4 billion yen.

Operating income increased by 608.5 billion yen. Positive factors contributing to the increase include 520 billion yen due to the cost reduction efforts and 470 billion yen due to the reduction in the fixed costs.

Consolidated vehicle sales for the fiscal year totaled 7.24 million units, a decrease of 330 thousand units from the last fiscal year.

Commenting on the financial results, TMC President Akio Toyoda said, "I am sincerely grateful to our dealers and suppliers who remained fully committed to providing as many cars as possible to customers, and to our employees as well as our overseas business operations for their efforts in working together so that the company will return to its normal state as soon as possible. And finally, above all, I am sincerely grateful to our customers of more than 7 million people around the world who newly purchased Toyota vehicles."

With regard to our operating income by region, we achieved year-on-year improvement in all regions for the fiscal year.

In Japan, vehicle sales were 2.16 million units, an increase of 218 thousand units compared to the last fiscal year. Operating income from Japanese operations increased by 12.3 billion yen to a loss of 225.2 billion yen.

In North America, vehicle sales totaled 2.1 million units, a decrease of 114 thousand units. Operating income increased by 475.6 billion yen to 85.4 billion yen including 31.3 billion yen of valuation profits from interest rate swaps. Operating income excluding the impact of valuation profit on interest rate swaps increased by 417.1 billion yen, to 54.1 billion yen, mainly due to improved market conditions and financial services.

In Europe, vehicle sales were 858 thousand units, a decrease of 204 thousand units, while operating income increased by 110.3 billion yen to a loss of 33 billion yen.

In Asia, vehicle sales were 979 thousand units, an increase of 74 thousand units. Operating income increased by 27.5 billion yen, to 203.6 billion yen.

Sales in other regions including Central and South America, Oceania, Africa and the Middle East etc., were 1.14 million units, a decrease of 304 thousand units. Operating income for Central and South America, Oceania and Africa increased by 27.9 billion yen to 115.5 billion yen.

In the financial services segment, operating income increased by 318.9 billion yen, to 246.9 billion yen compared to the last fiscal year, including 31 billion yen of valuation profits from interest rate swaps. Excluding the valuation profits, operating income increased by 254.4 billion yen to 215.9 billion yen. This was due to decreased expenses related to loan losses and residual losses and improved lending margins as a result of a declining funding cost mainly in North America.

TMC estimates that consolidated vehicle sales for the fiscal year ending March 31, 2011 will be 7.29 million units, an increase of 53 thousand units from fiscal year 2010, due to increased sales volume in regions outside of Japan.

Based on this assumption, TMC announced its consolidated financial forecast for the fiscal year ending March 31, 2011. Based on an exchange rate of 90 yen to the U.S. dollar and 125 yen to the euro, TMC forecasts consolidated net revenue of 19.2 trillion yen, operating income of 280 billion yen and net income of 310 billion yen.

TMC also announced a cash dividend for the full fiscal year of 45 yen per share, to be proposed at the general shareholders' meeting in June.

*Net income attributable to Toyota Motor Corporation


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  • 43 Comments
      • 4 Years Ago
      I think the secret is smiley face stickers.
      • 4 Years Ago
      Japan said that America is full of stupid people, some Americans are proving them right. There are a lot of idiots in this country or a lot of people who want to kill themself.
        • 4 Years Ago
        How cute, Willy is upset that Toyota made a recent profit.
      • 4 Years Ago
      Between all the lying, recalls, shoddy products I wouldn't touch a toyota if they paid me. But loyalists can be a strong thing. Ah well, to each their own.
        • 4 Years Ago
        Travis,

        Explain how Toyota became the world's largest automaker by making "shoddy" products. I would love to hear your answer.
        • 4 Years Ago
        As if other car companies (and even american car companies as well) were so squeaky clean
      • 4 Years Ago
      More cars more cars!!! We need more cars!!! We don't enough of them...the more cars the better...more oil spills too!
        • 4 Years Ago
        Please take your meds before you post.
      • 4 Years Ago
      Too late. Every automaker is stuck on incentives now.
      • 4 Years Ago
      Well yeah they offered more incentives than they traditionally had...except it's still less money than any of the non-luxury automakers except Honda. Less than Ford, less than GM, and way less than Chrysler. It's only considered a "lot of incentives" when benchmarked against Toyota's own insanely high standards.
      • 4 Years Ago
      Toyota is not going to drop off, just going through rough patch.
      • 4 Years Ago
      I've been waiting eagerly for several months to see this post, not because I love Toyota at all but because it proves how overly sensationalized this story was by the media, bloggers and some of the commenters on here.
        • 4 Years Ago
        @ Alex Hobbs

        "some" would be an understatement.
      • 4 Years Ago
      is this a typo:

      Operating income excluding the impact of valuation profit on interest rate swaps increased by 417.1 billion yen, to 54.1 billion yen, mainly due to improved market conditions and financial services.

      Notice the 417 to 54.1 that is not an increase. Or where they that far down?
      • 4 Years Ago
      Well it's because it's a well-run company.
      • 4 Years Ago
      they all are. Everyone is doing good. Actually from what I've been reading, Toyota is not so hot over there right now, recalls are a huge problem in China for Toyota
        • 4 Years Ago
        Not really. Race and regionalism will come into play here. I'm from China and I love my Toyota. Been terrific thus far. Chinese Toyotas do not have the CTS brake. Besides, in the US it's a political scene since the accident rate was too low for the brake to be considered a defect.
      • 4 Years Ago
      Chinese consumers are heavily backing Toyota now that China and Japan are cooperating at unprecedented levels due to Japan's new China-friendly Prime Minister. This is gonna get interesting.
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